Business News 19.6.2017 09:33 am

Sibanye Gold secures two-year wage agreement at Stillwater operations

Mining is conducted at a depth of 1 452 metres at Joel plant, which processes ore. Photo: Reuben Goldberg

Mining is conducted at a depth of 1 452 metres at Joel plant, which processes ore. Photo: Reuben Goldberg

Sibanye is the largest individual producer of gold in SA and one of 10 largest gold producers globally.

Sibanye Gold announced on Monday it had secured a two-year wage agreement with the United Steel Workers of America, International Union, the representative union at its Stillwater Operations in Montana, USA.

Last month, Sibanye completed the acquisition of Stillwater, the United States’ sole provider of platinum and palladium, for $2.2 billion (about R30 billion), in a bid to create a premier global precious metals miner.

Sibanye said negotiations with the United Steel Workers of America, International Union at East Boulder, would take place at year end.

In terms of the agreement, there will be a two percent general wage increase for all job categories effective from June 2, this year to January 1, 2018, with a further one percent increase effective from January 1, 2018 to June 1, 2018.

A two percent annual increase will be in effect for the second year of the agreement, from June 2, 2018 to June 1, 2019.

Sibanye chief executive Neal Froneman said they were very pleased to have secured this wage agreement soon after having acquired the Stillwater Operations.

“We note and are encouraged by the sensible and mature manner in which stakeholders have engaged, to agree on a mutually favourable outcome for the company and employees,” Froneman said.

“We look forward to similar engagement with all of our stakeholders at the Stillwater Operations and are optimistic about the important role these operations will play in the future of the Sibanye Group.”

Sibanye is the largest individual producer of gold in South Africa and is one of 10 largest gold producers globally.

Meanwhile, Sibanye has fired about 1,500 workers taking part in a wildcat strike at its Cooke mine in Johannesburg.

Workers at the mine downed tools over a week ago, angered by a company drive to root out illegal miners, which has included the arrest of employees for collusion and taking food down to illegal miners working underground.

To comment you need to be signed in to Facebook. Please do not comment by saying anything prejudiced.
We reserve the right to remove offensive comments.

poll

today in print